VAT on a newly established catering business

[Monkstone]

I am starting a catering business next month and the vast majority of turnover will be from the sale of bacon rolls and coffee. I envisage passing the VAT threshold of £70k within 4-5 months. The rolls purchased, meat and coffee beans are zero-rated for VAT, but I'll have to standard rate the products I sell once I reach the threshold. As I'll be unable to reclaim any input VAT, is there any way I can manage my VAT liability on sales? I don't think turnover will exceed £150k, so is accounting for VAT via the Flat Rate Scheme an option?

[Generix]

I am starting a catering business next month and the vast majority of turnover will be from the sale of bacon rolls and coffee. I envisage passing the VAT threshold of £70k within 4-5 months. The rolls purchased, meat and coffee beans are zero-rated for VAT, but I'll have to standard rate the products I sell once I reach the threshold. As I'll be unable to reclaim any input VAT, is there any way I can manage my VAT liability on sales? I don't think turnover will exceed £150k, so is accounting for VAT via the Flat Rate Scheme an option?

You are correct.

Take away (cold) sandwichs rolls etc will be zero-rated. Make sure you look into what you can zero rate and what you can't as a lot of people are too over cautious.

Flat rate scheme always works nicely where input VAT is immaterial and sales are mainly SR.

I assume you mean you'll have no input VAT to recover rather than you cannot reclaim any?

[Monkstone]

Thank you for your help, Generix. Yes, I mean I'll have no input VAT to recover.